Traditional workplace employees typically work for 9 to 5 full-time and work in a physical location. The traditional job has undergone many changes in the past few years, which has given rise to the GIG economy. It offers workers more flexibility and freedom in their employment model, which causes more and more workers to adapt to the gig economy.
The gig economy offers various benefits for workers and organizations. However, if you are wondering how the gig economy impacts the workplace and jobs, you can learn about the gig economy’s effect on the business landscape in India.
The term gig is a slang word for a short-term job. Whereas a GIG Economy is a free-market system that allows organizations to hire independent workers for short-term commitments. In simple terms, it is a digital platform that connects individuals and companies in exchange for money or labor or vice versa.
Examples of the gig economy include freelancing, independent contractors, project-based jobs, and part-time hires. Generally, workers and organizations use gig apps and digital technology to connect with each other. Other common gig economy jobs include:
The main benefits of the gig economy for the worker include the following:
The advantage of the gig economy for organizations includes the following:
The gig economy is changing the way people do a job as this concept allows workers to choose between part-time and full-time options. Here’s how the gig economy changed the traditional working model.
The main impact of the gig economy on the young generation like Gen Z and Millennials is how they perceive work. Nowadays, the younger generation prefers working in the gig economy rather than a traditional model in which they must work full-time.
The modern workforce allows the worker freedom, versatility, and personal fulfillment. Moreover, the young generation is more likely to multitask, meaning performing more than one job at a time to maintain a good career profile.
Smaller gig jobs offer workers more control over their life and allow them to focus on things they adore. However, some independent workers choose to work as gig workers full-time or use it as a supplemental income.
Companies and organizations benefit from the gig economy as they can keep the focus on core operations and hire gig workers when they need them. Simply put, employers can call independent service providers for services they don’t specialize in and require regularly.
By hiring on-demand, organizations can add new skills and capabilities that their employees may lack. Hence, the gig economy provides a more agile workforce and the ability to manage the workforce, the number of people, and people’s expertise depending on their needs. Also, gig workers are more efficient and productive for the organization as they can control their work location and hours.
The gig model is the perfect solution for workers and employers as it provides benefits to both. It allows workers to find jobs regardless of where they are from and how long they work. If they work productively, they can earn better than the traditional job. This model is more beneficial as employees don’t require to work 9 to 5 jobs to make a living.
Employers are also promoting the gig economy as they don’t have to put much money into training costs for new workers. They create a more flexible and productive structure of work rather than work driven by schedules. Moreover, employees and employers can communicate via email, allowing them to collaborate regardless of geographical location.
Another benefit of the gig economy for the organization is that they can save time and money as the gig economy doesn’t require office space for workers. Hence it cuts the office space costs and other expenses associated with operating work from the office.
It also saves companies from paying for healthcare and other benefits for gig workers. Companies can focus their money on profitable investments as they don’t have to provide their workers with training, equipment, and other needs.
The gig economy supports the pace of business change by offering flexibility and agility for companies. With this model, businesses can scale up or down as required to adapt to shifting objectives without the administrative burden and overhead cost. Moreover, it helps various start-up businesses to shift their focus on essential tasks by hiring freelancers to handle a single task or outsource a complete project.
Gig models encourage new businesses to be more responsive and agile to market changes by hiring specialized skills or expertise to adapt to the changing market.
The gig economy also accelerates the development of technology in the workplace. Nowadays, employers utilize the power of robotics, artificial intelligence, and data analytics to overcome the restrictions of the modern workplace.
Nowadays, smartphone connection has replaced the bridge that connects producers and consumers. With smartphones, gig workers can perform various tasks for business in real-time demand. Also, technology can help improve the work quality for gig workers. They also use technology to manage their schedules and workloads, allowing them to reduce stress and improve work-life balance.
According to a survey from MISI, 31% of professional workers take part in short-term gigs and make a living. Nowadays, freelancers can get their first client without spending a lot on building a professional reputation. Also, it is estimated that the gig economy will become a $5 trillion economy by 2025 in India.
Many GIG Economy platforms in India are responsible for the rise of this flexible employment model. These platforms reduce employers’ concerns about bad hiring by providing transparent customer assessment tools, rigorous verification processes, and simple dispute resolution mechanisms. Moreover, telecommunication tools like WhatsApp and Skype cut the cost of international communication and allow gig workers to find jobs internationally. Various universities are also now offering a range of free, world-class courses on their site that people can easily access. It will give rise to a gig economy associated with highly-skilled independent workers rather than low-skill workers.
Observing the current position of the gig economy, you can say that it is not downsizing anytime soon. In fact, the GIG Economy in India is rising because of flexible jobs. It has also provided new opportunities for workers and organizations but challenges the traditional job market.
MIMOIQ is a gig economy platform that provides a range of services to its clients. You can work as a gig worker and earn while you learn at this company. You can empower yourself and others around you with this opportunity from MIMO.
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